For each of the following questions, explain whether a confidence interval for a

Question

For each of the following questions, explain whether a confidence interval for a mean response or a prediction interval for a new observation is appropriate. What will be the humidity level in this greenhouse tomorrow when we set the temperature level at 31 degree C? How much do families w hose disposable income is $23,500 spend, on the average, for meals away from home ? How many kilowatt-hours of electricity will be consumed next month by commercial and industrial users in the Twin Cities service area, given that the index of business activity for the area remains at its present level?

Explanation / Answer

a) in this it will be a prediction interval as the temperature is fixed by us 31 which will remain constant hence the mean level of humidity will be predicted only.

b)in this we can find the confidence interval as the average disposable income is given of the families and now we just have to find the interval of the money spend on food when they are away from home which wil be way less then the average income they have.

c) in this we will try to pedict the interval depending upon the business index of the area and this will be easily predicted depending upon the past business activity.

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